Wipro net flat yearly, 16% up quarterly in Q1

Bengaluru: Global software major Wipro on Friday reported Rs 2,094 crore consolidated net profit for the first quarter (Q1) of fiscal 2017-18, posting flat (0.5 per cent) growth annually from Rs 2,083 crore in the same period year ago.

Sequentially, however, net profit grew 16 per cent from Rs 1,801 crore quarter ago.

“Consolidated revenue for the quarter (Q1) under review, grew 2.6 per cent annually to Rs 13,978 crore from Rs 13,626 crore in the like period year ago and 1.5 per cent sequentially from Rs 13,769 crore,” said the city-based firm in a statement here.

The company’s global IT services business contributed Rs 13,700 crore, registering 5.2 per cent annual and 2.2 per cent sequentially growth.

Under the International Financial Reporting Standard (IFRS), net income at $305 million declined 5 per cent annually from $321 million year ago but grew sequentially from $277 million quarter ago,

In dollar terms, gross revenue at $2,000 million was 5 per cent lower annually than $2,100 million in the same quarter year ago and 5.4 per cent less sequentially from $2,115 million quarter ago.

Global IT services revenue at $2,062 million was 2.7 per cent up annually from $1,972 million year ago, but 1.7 per cent less sequentially from $2,062 million quarter ago.

Operating margin for the quarter at 17.2 percent was marginally up from 16.8 per cent year ago and 14.4 per cent quarter ago.

“The IT margin includes a gain of Rs 253 crore ($37 million) from the sale of our hosted data centre business in the quarter,” said the company in the statement.

The company has projected revenue from its IT services in the range of $2,009 million and $2,049 million for the second quarter (Q2), which translates into sequential growth of 0.3-2.3 per cent growth, excluding the impact of the divestment of the data centre.

“We have seen pickup in spending in the developed markets, particularly in North America and BFSI (Banking, Financial Services and Insurance). Our investments in digital continue to help us build differentiation in key industry segments, resulting in improvement in our client metrics,” said Wipro Chief Executive Abidali Z. Neemuchwala.

According to Chief Financial Officer Jatin Dalal, the company continued to improve its operating metrics and generated cash flows at 136 per cent of its net income.

The IT services business added 75 clients during the quarter as against 58 quarter ago and 45 year ago, taking their total number to 1,254 in Q1 from 1,248 quarter ago and 1,244 year ago.

Though the company added 832 techies to increase its headcount to 164,659 at the end of the quarter from 163,827 quarter ago, it was still 822 less than 165,481 year ago.

The company’s blue-chip scrip of Rs 2 face value lost Rs 2.20 per share to end at Rs 283.05 when trading closed on Friday as against Thursday’s closing rate of Rs 285.25 and opening price of Rs 286.50.